Token Provisioning for Third-Party Payment Apps
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current payment processing systems lack control for credit card issuers over third-party electronic wallets and payment devices, leading to inefficiencies in transaction processing and customer authentication.
Innovation Solution
A method for provisioning tokens to third-party payment applications on mobile devices, allowing customers to authenticate and link their financial accounts, enabling secure token provisioning for various transaction domains, including e-commerce, mobile payments, and closed-loop transactions, with options for secure storage and communication.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If third-party electronic wallets store credit card information for transactions, then customer convenience is improved, but issuer control over payment processing deteriorates
Solution Approach 1:
The patent introduces a token as an intermediary that replaces direct storage of credit card information in third-party wallets. The token serves as a mediator between the issuer's payment system and the third-party application, allowing transactions to proceed conveniently while maintaining issuer control through the token provisioning and management mechanisms.
2Productivity
If tokens are provisioned to third-party payment applications, then transaction efficiency is improved, but system security requirements deteriorate
Solution Approach 1:
The patent implements preliminary authentication and authorization actions before token provisioning. The system performs customer verification, device validation, and security checks in advance of token issuance, ensuring that only authorized entities receive tokens. This preliminary security framework enables efficient transactions while maintaining robust security controls.
3Adaptability or versatility
If multiple payment devices are supported, then customer versatility is improved, but authentication complexity deteriorates
Solution Approach 1:
The patent creates a universal token provisioning system that works across multiple payment devices and third-party applications. The token mechanism serves multiple functions: it authenticates the customer, authorizes the transaction, and links the payment device to the account. This multi-functional approach supports diverse payment devices while maintaining a consistent, manageable authentication process.
Data Source
AI summary
Systems and methods for facilitating payment application provisioning and transacting are disclosed. According to one embodiment, a method for provisioning a token to a third party payment application on a mobile device may include (1) receiving a logon from a customer using a mobile application for a financial institution executed on a mobile device and a device identifier for the mobile device; (2) receiving a request to provision a token for a third party payment application; (3) authenticating the customer using the logon information and the device identifier; (4) provisioning a token for a payment device associated with the customer; and (5) providing the token to the third party payment application for transaction processing.